Snehal Upadhyay-
The High Court of Delhi issued directions with regard to bank guarantees required by the Court and has also notified the Performa for ‘Summons for Settlement of Issues in a Suit Relating to Commercial Dispute’.
The High Court issued these directions on 2nd June 2021, in the case of Ircon International v. Hindustan Construction Co. Ltd.
According to the directions, “it has been stated that a clause of term shall be necessarily incorporated in every Bank Guarantee furnished by a party in the High Court for release of the amounts deposited.”
The directions further state that in case of bank guarantee has not been renewed within ten days before the term of expiry then the party at whose instance the bank guarantee has been furnished the bank should proceed to encash the bank guarantee and send the particular amount to the beneficiary under the bank guarantee.
The bench comprising Justice Vipin Sanghi and Justice Jasmeet Singh issued such directions after perceiving the necessity of issuing practising directions in the matter of renewal of bank guarantees famished by the parties with due consideration to release of the amount in the favour of the party.